Project Description III

Pollution Liability Insurance Underwriting Audit
Asbestos Mine
Central California

Project Description: The Source Group performed a complete environmental compliance audit on an operating asbestos mine and processing plant in central California on behalf of a major insurance underwriter.

The major objectives of the audit were to develop and provide recommendations for limiting or mitigating pollution liability to the insured and to assist our insurance client in evaluating risks and establishing an appropriate premium for pollution legal liability insurance renewal.

The mine and facility is the only operating asbestos operation in the country. The ore contains a non-hazardous form of asbestos that is manufactured into extruded building products.

All aspects of the mine and plant operations were reviewed including ore mining and transportation operations, ore processing and product production, tailings handling and disposal, stormwater runoff containment, treatment and discharge, scrap equipment storage and disposal, ongoing and planned reclamation projects, hazardous materials and hazardous waste handling, storage, treatment and disposal, regulatory permits and compliance documentation.

Results: An audit report was prepared providing a comprehensive review of the audit findings and recommendations for improving operations and limiting environmental liability. Several key areas were identified that could expose both the insured and insurer to increased environmental liability and result in pollution releases. These areas included waste storage, waste disposal documentation, and increasing their financial surety instrument for mine closure. Recommendations were developed for improving operations in these areas and provided in the final report.